This IDC study provides a 2017–2021 forecast for the worldwide project and portfolio management market, which grew 6.9% to $4.1 billion in 2016 with current IDC numbers (compared with growth of 5.3% to $3.8 billion in 2015). We expect the market to grow at a CAGR of 5.9% over the course of this five-year forecast to reach $5.4 billion by 2021. We also see significant uptake of PPM in the cloud, which will continue through the forecast period. This growth was noteworthy in an emerging 2016–2017 market. Decision making in volatile financial environments demands effective prioritization, and we saw some revenue growth from major and key innovative smaller PPM vendors in 2016, with a few exceptions. The increasing role and complexity of sourcing for projects, programs, and portfolios in the enterprise and the need to align with business needs, corporate governance, and regulatory requirements have combined to retain growth for PPM as the global economy remains in flux. IDC has seen increased alignment of PPM with ERP, the evolution and rapid uptake of SaaS PPM, and increased coordination with application life-cycle management (ALM). Agile and service management vendors have been leveraging PPM through alliances, integration, organic development, and/or acquisitions. This continued to have an impact in 2016 and will play a role in market growth through 2017–2018. We expect PPM in that time frame to also play a synergistic role increasingly with new product development and the evolving Internet of Things (IoT) arena as well as governance for DevOps as organizations must increasingly coordinate software deployment from inception to deployment and service management (with an increasing range of platforms on which to deploy — from mobile, social, and cloud to "things.""Global 2000 organizations continue to struggle with the complexity of project, program, and product delivery while seeking to manage economic and political volatility as operational and business needs change dynamically. Agile management of human, financial, and other resources is key. In response, demand will remain ongoing for PPM tools across the PPM segments ranging from IT PPM, service resource planning, and new product development to capital projects and engineering and construction. Smaller vendors will play a key role in product and market innovation, and differentiated PPM solutions will come into play in that context as further consolidation and product evolution occurs, and we therefore expect a solid CAGR for this relatively mature market of 5.9% for the 2016-2021 period," says Melinda Ballou, research director for IDC's Agile ALM, Quality, and Portfolio Strategies service.

Please Note: Extended description available upon request.

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Advice for Those Targeting PPM Technology

Market Forecast

Market Context

Drivers and Inhibitors

Drivers

Global Competitive Pressures and Velocity

Complex Sourcing

Agile ALM Demand and Need for Governance

Global Compliance and Competitive Demands for Multimodal Deployment and IoT

Inhibitors

Cultural and Process Barriers to Adoption

Significant Market Developments

Changes from Prior Forecast

Market Definition

Methodology

Historical and Forecast Market Values and Exchange Rates

Related Research

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